All Forum Posts by: Blaine Meehan

I currently own a handful of properties and know I need to get ownership under an LLC. That said- I'd love to hear the pros and cons of putting all properties into one LLC vs. each individual property being in its own separate LLC.

Any insight would be greatly appreciated!

@Cody Godfrey Hi Cody! Can we hear more about the home run deal? Numbers, income, etc? Sounds like an exciting one for you.

Do you have a cash advance on your credit card? Being 25 your limit might be on the smaller side, but you could in theory, gift the money to yourself out of a cash advance from your own credit card, then pay it all back after closing. Your closing is in August, when do they need to see the reserve funds in your account? The risk with that is it would show on your credit report, so if they pull it again prior to close it may cause other concerns.

@Byron W. If you’re living in one of the properties, they most likely put you on a Home Owners policy. Depending on the carrier, the Building Personal Property is automatically calculated as a percentage of the Building Value. In this case it looks to be 70%, which is high. In our area it is usually somewhere in the 30-40% range, and then if you have items that are high value such as jewelry, equipment, etc - you’d want to list them out specifically as that can skew the numbers.

Your agent is right though -usually the only way to lower the Property Amount would to be to lower the Building Limit.

Also, very common that Replacement Costs are much higher than appraised value. What I would do is take a look at the cost per square foot of new similar type construction, to get an idea as to what the true cost to rebuild would be, if the property were to burn down completely and you had to rebuild. So if the property is 1000 square feet and new construction in your area is 200 per square foot, you should look to insure Replacement Cost around $200,000 at the minimum.